Lucasfilm stuns Marin, pulls plug on Grady Ranch movie studio project

Lucasfilm pulled the plug on its bid to develop the old Grady Ranch on Tuesday, citing bitter opposition from neighbors and regulatory delays, and said it intends to sell the land for a low-income subdivision development.

Saying it was withdrawing the project "with great sadness," Lucasfilm added it will build the production studio facilities it needs elsewhere.

The stunning move cheered project foes who called the ranch site near their homes the wrong place for a film production studio with a footprint the size of two football fields. But county officials and business interests were devastated, noting the project promised to energize the Marin economy, providing millions in revenue and hundreds of jobs.

"We have several opportunities to build the production stages in communities that see us as a creative asset, not as an evil empire, and if we are to stay on schedule we must act on those opportunities," Lucasfilm said it a statement headlined, "Lucasfilm pulls building plans out of Marin."

"The level of bitterness and anger expressed by the homeowners in Lucas Valley has convinced us that, even if we were to spend more time and acquire the necessary approvals, we would not be able to maintain a constructive relationship with our neighbors," the firm owned by billionaire filmmaker George Lucas added.

"We love working and living in Marin, but the residents of Lucas Valley have fought this project for 25 years, and enough is enough," Lucasfilm said. "Marin is a bedroom community and is committed to building subdivisions, not business. Many years ago, we tried to stop the Lucas Valley Estates project from being built, but we failed, and we now have a subdivision on our doorstep."

Lucas Valley Estates neighbors were the most vocal opponents of the Lucas project.

Lucasfilm said that after years of delays and "no end in sight," the firm plans to build the production studios it needs elsewhere — and put the Grady Ranch up for sale to developers. Some 232 homes were proposed for the property in 1974, but Lucas blocked residential development when he bought the land.

"We plan to sell the Grady property, expecting that the land will revert back to its original use for residential housing," Lucasfilm said. "We hope we will be able to find a developer who will be interested in low-income housing since it is scarce in Marin. If everyone feels that housing is less impactful on the land, then we are hoping that people who need it the most will benefit."

County supervisors approved a master plan for a bigger Lucas project at the Grady Ranch 16 years ago, but it never was built. Revisions to the master plan that reduced the project's impact on the environment were unanimously approved by county planners, but approval by county supervisors was delayed last month following last-minute concerns by state and federal regulatory agencies about the filmmaker's plan for a $50 million to $70 million creek restoration project.

Project boosters noted the project's demise was a multimillion dollar blow to Marin's economy and scuttles the prospect of 700 jobs during construction alone, as well as several hundred more high-paying film industry jobs.

"After tens of millions in investments, that they would make a decision not to go forward is a devastating blow for the county of Marin," said Cynthia Murray, head of the North Bay Leadership Council, a coalition of key employers including Lucasfilm. "Apparently the last round of regulatory agency delays ... was the straw that broke the camel's back."

"It's shocking. It's disappointing," said Ed Segal, CEO of the Marin Association of Realtors. "We should be doing all we can to keep, grow and attract jobs."

Supervisor Judy Arnold joined others in disbelief, saying Lucas is "one of the best neighbors anyone could ever have." She noted that the "loss of the millions in revenue we would have coming in from this key targeted industry ... is just unfathomable."

Supervisor Susan Adams also expressed dismay, saying, "I'm disappointed we couldn't work out the details," adding most of the county, including the greater Lucas Valley community, supported the project for which a master plan was approved long ago. Among other losses, she said, will be the creek restoration project that promised to be "a model watershed restoration program."

"I am stunned," said county Community Development Agency chief Brian Crawford, calling it a "missed opportunity" for Marin. "It's a sad day for Marin County."

In San Rafael, City Councilman Marc Levine said: "It is unfortunate that an environmental steward and innovative job creator like George Lucas cannot find a home for a project like Grady Ranch here in Marin. We need to keep our economy vibrant and help conservation visionaries like Lucas along the path here in the region rather than force them elsewhere."

She said neighbors "really were never against Lucasfilm," but merely wanted the project "located in a place where it made more sense."

"This is the first I've heard of this," said estates association president Liz Dale. "I'm just stunned."

Lucasfilm said neighborhood opposition and the delays it faced pushed it over the edge.

"We have been trying for four years to get the precise development plan approved, but it appears that, as always seems to be the case, the process will be delayed again for more months or years," in light of concerns by state and federal fisheries and water agencies concerned about creek restoration, the company statement said.

"We are not a real estate developer. We need the spaces we build to do our work. Movies are waiting to be made, and we must move forward. Unfortunately, the projects we had planned to shoot on those stages have already started production and we will need the studio space by early 2013."

The firm said neighborhood fears about its developments in the valley proved needless, and noted it has preserved more than 5,000 acres of open space, along with an 11-mile hiking trail, planted 8,000 trees, hidden all buildings from the road, provided a fire department and "boosted Marin's economy by hundreds of millions of dollars and provided employment to its residents."

Lucasfilm concluded: "We realize our solution to creating open space by placing low-impact commercial facilities on farmland, while permanently preserving over 95 percent of the total acreage, has not been accepted by our neighbors. Nor are they or many of the public agencies interested in the $50-$70 million restoration of the stream.